ESM Reopens 10-Year Bond, Raises €1.5 Billion

The European Stability Mechanism (ESM) on Tuesday raised €1.5 billion by tapping a 10-year bond, only its second syndicated deal of the year, allowing it to complete its financing needs for the second quarter.

“Today’s strong order book shows that trust in the stability of the euro area is unbroken and that investors can see well past the recent market volatility. This helped the ESM close its second consecutive successful deal this year,” Siegfried Ruhl, ESM Head of Funding and Investor Relations said.

After settlement of the issuance, the total volume for the March 2027 bond will stand at €4.5 billion. The spread of the 0.75% bond was fixed at mid swaps minus 11 basis points, for a reoffer yield of 0.785%. Order books were in excess of €4 billion. Bookrunners were BofA Merrill Lynch, Commerzbank and HSBC.